Coree Cuts Back

Coree Networks Inc., one of the Iris Group companies, felt the sting of the economy's slowdown this week. The majority of the New Jersey-based core switch maker's staff has been let go, Coree chairman H. Michael Zadikian told Light Reading on Tuesday. The company's development efforts have been winnowed down to a small group of engineers so Coree can preserve its cash, he says.

After deciding that the market for Coree's MPLS-based switch wouldn't open up until 2002 or 2003, Zadikian says the company's directors decided to revisit how the company was building the switch, with the idea of possibly incorporating newer components and other technologies. One key difference in Coree's development this time around, Zadikian says, will be that the company will use "off-the-shelf" switching chips rather than trying to build its own.

"We've decided to reset the program, aim for 2002 or 2003, and take advantage of [technology] advances," he says. In conjunction with its new product plans and the grim funding environment, Zadikian says, Coree began "a substantial reduction in work force."

Zadikian didn't specify how many were let go. As of February 2001, when Coree announced its first funding round of $30 million, the company employed about 50 people (see Coree Networks Raises $30 Million).

Coree's investors include Hook Partners, Mayfield Fund, Sevin Rosen Funds, and Lightspeed Venture Partners (an investor in Light Reading).

"You have to adapt to the change in the market environment," Zadikian says. "If you don't, you're gonna die."

The decision to cut back at Coree also came because it was the last company formed in the Iris Group -- which includes Metera Networks Inc., Latus Lightworks Inc., and Iris Labs -- and, therefore, its product was not as far along in development.

Though they were formed and funded separately, the Iris Group companies hold to a common network vision -- dubbed the Optical Data Network Hierarchy (ODNH) -- and common network management software. The gist of ODNH is that the core stays dumb and fast, network intelligence remains at the network's edge, and wavelengths are handled in larger groups so they're easier to manage (see Iris Group Shuffles Executives and Iris Group Unveils Network Architecture).

The other companies in the Iris Group are still on track, and each expects to ship products next year, Zadikian says. There are fundraising efforts underway for each company, but Zadikian declined to go into details. He says Metera and Latus employ between 120 and 140 people each.

Zadikian also implied that none of the other Iris Group companies were in immediate financial trouble. "The companies raised a lot of money in their Series A rounds -- about twice what is normally raised."

- Phil Harvey, Senior Editor, Light Reading
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byebye99 12/4/2012 | 7:53:38 PM
re: Coree Cuts Back Are there some persons who know the situation of Kirana Networks Inc. in NJ?

Please let me know
ZAPPED 12/4/2012 | 7:53:31 PM
re: Coree Cuts Back themaninblack

Why do you continue to associate me with the management of Tachion. I did say back in early July that I was finished with that thread and I kept my word! There is no axe to grind. You read the acticle on Coree, someone on this thread mentioned Village laid off 10%, I'm only stated facts, WHOSE NEXT? Or did I strike a nerve, maybe you are in with the basement boys over there with Kirana. For once I will agree with Pastel, he did hit the nail on the head when it came to them!!! Lord only knows whose next?
2nmWorth 12/4/2012 | 7:53:31 PM
re: Coree Cuts Back You must be kidding. The company is run by 2 sociopaths. Stay away unless you are into S&M

The Goddess
lightreader 12/4/2012 | 7:53:29 PM
re: Coree Cuts Back yeah,

40 G "was" for sissies....probably not anymore..
all iris co's trace their origins to the much
fabled monterey debacle...in this climate who
will buy their hype?...huh...this is dead off
the ground...
stuartb 12/4/2012 | 7:53:28 PM
re: Coree Cuts Back ""Maybe the fact that the box and the CEOGÇÖs trade-secret algorithm do not work as advertised has something to do with it.""

Trade-secret are dirty words around Village.

MaxQoS 12/4/2012 | 7:53:27 PM
re: Coree Cuts Back Does anyone know anything about Flarion? They're doing wireless data not optical so this may be off topic.

byebye99 12/4/2012 | 7:53:22 PM
re: Coree Cuts Back You mean I shouldn't move there???
Bad situation???

byebye99 12/4/2012 | 7:53:21 PM
re: Coree Cuts Back Very bad situation of Kirana Networks???
I should not move there???
manoflalambda 12/4/2012 | 7:53:21 PM
re: Coree Cuts Back > How 'bout Alphion (aka Optosphere). Rumor
> suggests they recently ousted their
> CEO/founder and the HDW VP. Any news?

ceo/founder still there and they haven't
fired anyone else either ...

What are they up to? I've seen some MPLS inquiries and some stuff on Semiconductor Lasers or Amplifiers... Another MPLS-based switch? Metro or Core?

aragog 12/4/2012 | 7:53:14 PM
re: Coree Cuts Back :Very bad situation of Kirana Networks???
:I should not move there???

This is Tachion-2: same management, same
employees, and worse, a loser CTO (from
Lucent) who has a rep of not getting along
with anyone. Rumor has it that they are
burning through their cash pile very fast
and don't look likely to get any more.
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